Malaysia: New Tax Exemptions, Changes to the 1955 Employment Act, and Tax Incentive for Electric Car Ownership

January 25, 2022
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Tax Exemption on Foreign Source Income (FSI) for Resident Taxpayers

From 1 January 2022 to 31 December 2026, income tax exemption on dividends will be given to companies, while individuals will be tax-exempted for all types of income.

Proposed Amendments to the Employment Act 1955

Amendments to the Employment Act 1955 were tabled in Parliament. Key amendments proposed include:

  • Flexible working arrangements
  • Reduction of normal working hours
  • Maternity and paternity leave changes
  • Anti-discrimination measures
  • Anti-Harassment measures
  • Foreign Worker Employment

Tax Incentives for Electric Vehicles

To cut down the carbon footprint, tax incentives will be given to EV ownership to encourage greater adoption.

Source: Links International

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